Room For Improved Cash ManagementDespite strong absolute cash generation, the FCF-to-net-income metric shows inefficiencies in translating earnings into discretionary cash versus peers. Persistent working-capital or timing issues could constrain funding for strategic initiatives or capex over the medium term.
Moderate Net Profit MarginA mid-single-digit net margin leaves limited buffer against cost inflation or enrollment downturns. If input or staffing costs rise or pricing power weakens, profitability could compress, reducing ability to sustain investment and dividends across academic cycles.
Business Dependence On Tuition/enrollment TrendsRevenue is structurally tied to student enrollment and demographic patterns. Any prolonged decline in school-age population or lower enrollment conversion would directly pressure revenues and utilization of fixed classroom capacity, posing lasting headwinds to growth.